Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1887-02-02

financially responsible? To satisfy itself
on these points q member of the Chronicle
staff was sent from San Francisco to this
city to investigate the affairs OF the
Louisiana State Lottery Company, and to
witness the extraordinary drawing which
took place yesterday.
LEGALITY OF II LOTTERY.
The first duty of the Chronicle reporter
was to ascertain the legal status OF the
concern. docs it have a legal exist
ence?" was the question he pat to a lead
ing member OF the Louisiana Bar, and II
gentleman who will soon occupy a high
judicial position in the State.
"Of course it has," he replied very
promptly. Its franchise is now unques-
toned in law. In 1868 the Legislature Of
Louisiana enacted a Law entitled An Act
to increase the revenue of the
State, and to authorize the incOr-
poration of The Louisiana State
Lottery Company, and to repeal
certain Acts now in force This Act pro-
vided, that no foreign lottery tickets
should be sold within the State, and gave
to certain citizens named authority to or
gInize Il corporation to protect the State
against the great losses heretofore incurred
in sending large amounts OF money to for
eign countries for the purchase OF lottery
tickets, to establish n solvent and
reliable home institution, and
to insure perfect fairness and
Justice in the distribution OF prizes The
capital stock was liked at 81, 900, 600, in
shares of 500 each. There were provi-
siOns for a Board OF Directors and all the
corporate rights to sue and to be sued, etc.
The duration of the lottery was to be for
twenty-five years. 1t was to pay $4,000
a wear to the educational fund, and was
required to give bonds to carry out these
provisions. The Constitution of Louisiana
adopted in 1879, touches the lottery ques-
ton rs follows:
ARTICLE 167. The General Assembly
shall have authority to grant lottery char
tiers or privileges; provided each charter or
privilege shall pay not less than $40, 900
per annum i'll money into the treasury OF
the State; ami provided further, tina all
charters shall cease and expire on the LIST Of
January, 1875, from which time all lOtter-
les are prohibited in the State.
The SO, 900 per annum now provided by
law to be paid by the Louisiana State Lot
terry Company, according to the provisions
of its charter granted in the year lS6S,
| shall belong to the Charity Hospital of
New Orleans, and the charter Of SAID com
piny is recognized rs a contract binding on
the State ior the period therein specified,
except its monopoly clause, which Is here
by abrOgated, and all laws contrary TO the
provisions OF this article are hereby declared
null and void; provided, SAID company
shall file IA written remuneration Of all It's
monopoly features III the office of the Sec
rotary Of State within sixty days after the
ratification of this Constitution.
These conditions were promptly accepted
by the Louisiana Lottery Company; indeed
this constitutional provision guaranteed
the Company exactly what it was contend
Ing it poSsessed-a contract with the State
OF Louisiana. This position has been fur
ther strengthened by a decision OF the
United States Supreme Court rendered
within a lew days, An effort was made TO
tax the lottery company under an act
taxing stockholders i'll corporations for
State and city purposes. This
tax the Company resisted, on behalf OF its
shareholders on the plea that the Company
| had a valid and bona fide contract with
the State, and that it committed the whole
tax by the payment OF $lO,O0O Il year to
the Charity Hospital. This plea was sup
ported by the United States Supreme
Court. which holds that the lottery com
pany does have II legal and binding con
tract with the State OF Louisiana, and that
any attempt to cXtort from it n sum in eN-
cess of the 10000 is Illegal. ThiSdecisiOn,
however, carries with it n benefit to the
Louisiana Lottery something more import
ant to the managers than the mere saving
OF dollars and centS-rccOgnitIOn by the
laws of Louisiana and Of the nation us u
corporation engaged in u legitimate bust
ness under n legal and valid charter. This
recognition of the validity ]OfcOntract gives
The Louisiana State Lottery what no lot
terry has ever had in America since the
DAYS of Washington and Jefferson, when
the Presidents were authorized to draw
lotteries for the benefit OF the national
capital-a legal existence for the period Of
its charter.